AIG Investor Urges 2nd Circ. To Revive Fed Derivative Suit

Law360, Los Angeles (February 12, 2013, 6:49 PM EST) -- Starr International Co. Inc. asked the Second Circuit on Monday to revive its shareholder derivative suit against the Federal Reserve Bank of New York over a 2008 American International Group Inc. transaction, saying a lower court ignored well-pled allegations.

In a brief filed Monday, Starr, which has accused the Fed of strong-arming AIG into paying the full value of its credit default swap contracts as a means to offer “backdoor bailouts” to global financial institutions, asked the appeals court to reverse U.S. District Judge Paul A....